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Chandra Asri, Glencore to acquire Shell’s petrochemical assets in Singapore
Indonesia’s Chandra Asri is in expansion mode after announcing plans to construct a caustic soda plant and an ethylene dichloride plant.
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PT Chandra Asri's head office in West Jakarta is pictured in an undated photo. (Chandra Asri/-)
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ocal petrochemical firm PT Chandra Asri Pacific, along with Switzerland-based commodity trading and mining firm Glencore, has entered into a sales and purchase agreement to acquire Shell Energy and Chemicals Park Singapore (SECP) from Shell’s subsidiary in the city-state.
The buyout will be conducted through CAPGC, a joint venture majority-owned and operated by Chandra Asri, with Glencore as the minority stakeholder. The deal is pending regulatory approval and is expected to be completed by the end of the year.
Bloomberg reported on Friday that the transaction could be worth around US$1 billion.
Located on Bukom Island, SECP comprises a refinery with a processing capacity of 237,000 barrels of crude oil per day and ethylene crackers with a production capacity of 1.1 million tonnes per year. The petrochemical unit, which was Singapore’s first refinery when established in 1961, also includes downstream chemical assets on neighboring Jurong Island.
“This integration of our new energy and chemicals platform in Bukom and Jurong Island, Singapore, with our established presence in Cilegon, Indonesia, will drive the expansion of product offerings and service enhancements, enabling us to capture new opportunities in growing Southeast Asian markets,” Chandra Asri CEO Erwin Ciputra said in a statement on Wednesday.
Last year, Shell initiated a strategic review of its energy and chemical park assets in Singapore and explored several options, including divestment.
Glencore sees SECP as a prime asset due to its strategic location in Singapore, the energy-trading hub of Asia.
